Talent Management Strategy Formulation
Envision an organization (profit, nonprofit, product- or service-driven) with 200 people, in which 20 are identified leaders.
With this organization in mind, write a 6–8 page paper in which you:
Formulate a talent management strategy to encompass the entire talent requirements of the organization.
Determine the key components of talent management, including identifying, assessing, and developing talent.
Examine how the talent management process is a strategy for a competitive advantage for your organization.
Assess how the talent management strategy should change with the anticipation of the organization doubling in 5–6 years.
Talent Management Strategy
The human resource department plays a pivotal function in the company, such as employee relations, payroll, talent acquisition, and onboarding. One of the more duties of human resources is talent management to support the realization of organizational goals. Over the years, talent management practices have changed to cater to individual trends, just like other aspects of the working environment. In the hyper-change environment, strategic talent management is one of the necessities of attaining a sustained competitive advantage. The global trends in human capital management focusing on talent management have resulted in a revitalization of the work-worker-workplace equivalence. Talent management can be defined as the methodical and organized strategic procedure of attainment of the right talent involved and supporting their growth to their optimal competences to achieve their organizational objectives (Turner & Kalman, 2014). This paper presents a comprehensive talent management strategy that covers the whole talent requirements of organizations. Specifically, the paper addresses the key components of an effective talent management strategic plan needed to achieve a sustained competitive advantage and growth for the organization in the next five years.
The talent management process involves the identification of talent gaps, vacant job positions, finding and onboarding appropriate candidates. It also involves developing their needed skills in the system, training with focus and effective engagement, retention, and motivation to accomplish organizational goals in the long run (Silzer & Dowell, 2010). Therefore, talent management permeates all elements relating to the human resources at the workplace while ensuring that the organization accomplishes its objectives. This is achieved by getting the right personnel on board and allowing them to support the growth and success of the business. Besides, talent management consists of varied elements and processes that work in unison to guarantee organizational success. For instance, the analysis of the precise talent gaps for the current and the future, identification of the correct talent pools and best candidates, and optimization of their existent skillset and strengths while growing their touch-points.
The Talent Management Process
The process of talent management is a cyclical process instead of the standard linear development of events. It begins with the acknowledgment of the need for talent and results in filling the gap and the ultimate growth and optimization of the skillset, expertise, and traits of new and old employees. The talent management process constitutes six major steps, namely, planning, attraction, selection, development, retention, and transition (Silzer & Dowell, 2010). The first step in the process of talent management is the planning and development of employee initiatives. This involves the identification of the gaps in the requirements of human capital and formulation of the job description for the essential roles to offer guidance of the sourcing and selection of the right employees. The second stage in the process of talent management is an attraction. Based on the planning, the next phase is deciding whether the requirements of talent should be filled from internal sources or external sources. This stage involves the attraction of the healthy flow of job applicants. The external sources comprise job portals, referrals, and social networks. The different talent pools need to be identified and tapped into to maintain a smooth and efficient process. This employer brand of the organization aids in the decisions of the quality of incoming applications.
The third stage is the selection that involves several tests and background checks used to find the ideal persons who can match the job and organizational needs. The interviews, written tests, psychometric tests, group discussions, and in-depth analysis of available information on various public access platforms can aid in gauging an all-rounded image of the candidate. Furthermore, there are software as well as artificial intelligence-enabled solutions that can be used by recruiters in skimming through the large database of CVs to emphasis on the most appropriate options and find the perfect match. The fourth stage is developing employees to aid them in growing with the organization. This can be achieved by training the employees for the expertise and knowledge needed to contribute to organizational success and improve their loyalty and engagement of the workforce. Moreover, the effective onboarding program helps the employees settle into new roles (Hatum, 2010). Also, the stage involves the provision of vast opportunities for the enhancement of the skills, proficiency, and skills while enabling their growth through job-rotation, coaching, mentoring, and counseling schemes.
The subsequent stage is the effective retention of talent to support the sustainable growth and success of the organization. The majority of the organizations retain the best talent through promotions and salary increments, career growth opportunities, involvement in decision-making and projects, financial rewards, recognition programs, and training for evolved roles in the organization. The final stage in the effective talent management process is transition. This stage focuses on the collective evolution and transformation of the organization through the growth of employees. This is achieved by making each worker feel that they are an important part of the bigger organization by providing adequate retirement benefits, carrying exit interviews, and succession planning as career points that allow the shared journey of transition.
Formulation of Talent Management Strategy
The HR department teams can formulate an effective talent management strategic plan that maps out the organizational goals and priorities and is linked to corporate strategic plans and goals. The establishment and execution of the talent management strategy will deliver numerous benefits to the human resources teams and the organization. The strategy will help build an outstanding workforce that is well aligned, motivated, and delivers exceptional results in the achievement of strategic goals (Collings et al. 2019). The formulation of a suitable talent management strategy can be divided into six main steps. The first step is the identification of the organizational goals and priorities based on imminent changes and new initiatives for an organization.
Secondly, the primary drivers and core challenges that can impact the organizational ability to accomplish goals are identified. Some of the challenges include the competitiveness of the job market, legislation, regulations, new technology, and employee satisfaction survey outcomes. The next stage involves conducting a gap analysis by comparing where a firm is at present with future requirements and categorizing any gaps that need to be addressed to accomplish its goals. Based on the organizational objectives, gaps, and challenges identified in the preceding steps, the HR goals are defined for the next year. Next, an inventory of the present talent management processes is determined to implement changes to the existent process and incorporate a new process for supporting these goals (Collings et al. 2019). The final step is the measurement of the results and communication of successes and contributions. With the prioritization of HR goals and priorities, the focus of the final stage is the assessment and measurement of the effectiveness and communication of the results to organizations. This is achieved by monitoring the relevant metrics for reporting on the ongoing progress success, and remedial actions to determine the effectiveness of the goals and associated initiatives.
The Components of Talent Management
When thinking about the organizational future, it is essential to about the goals, objectives, and initiatives. Also, it is vital to consider how employees can achieve their goals. Talent management is linked to the alignment of the organizational business strategy with its employees by aligning the right persons with the right roles and proper tools. Seven core opponents of talent management can be implemented strategically (Berger, 2017). The first component is strategic planning by the development and implementation of the organizational goals and strategic plans. The second component is the acquisition and retention of talent to bring new talent into the organization and the recognition and cultivation of talent internally and externally. The third component is performance management, which aligns the right persons with the proper role with guaranteeing that roles are aligned with the business strategy to accomplish the organizational goals. Performance management enables the alignment of talented employees with suitable roles for the development and growth of the organization.
The fourth component is learning and motivation, which aids in acquiring skills and information to yield experience and knowledge. The learning programs comprise the various tasks and activities that support the organizational culture and initiatives, which enable employees to view their valuable role and impact on the organization. Another component is compensation, which aligns the strategic goals with the financial and non-financial incentives of acknowledging the employees, rewarding their contributions, and recognizing their superior value to an organization (Thunnusen & Gallardo-Gallardo, 2017). The next component is career development that nurtures potential leaders through the provision of tools for professional development to advance the careers of employees. The final component of talent management is succession planning by making decisions to ensure that the organization continues to run smoothly if critical positions are filled rapidly.
Competitive Advantage and Talent Management
An organization can work towards the accomplishment of its corporate mission, vision, and organizational objectives. This necessitates an in-depth understanding of all financial and non-financial resources that are required for accomplishing the same. The resources are subdivided into two classes, namely, differentiating and non-contingent capabilities. The non-contingent capabilities are the fundamentals that enable organizations to compete in their markets, while the differentiating capabilities distinguish the firm from others by offering a competitive advantage (Berger, 2017). Human resource processes devise non-contingent capabilities. However, they do not align with the organizational strategies and provide a competitive advantage.
The majority of the HR procedures develop individuals in similar aspects and capacities as rivals, which fails to offer any competitive advantages. For an organization to establish a competitive advantage using HR processes, the strategic differentiating capabilities should be defined, identified, and developed. As a result, this empowers the human resource teams to create a substantial impact on strategy and linkage between talent management and organizational strategy. Talent management should be planned as a differentiating capability that offers a real and considerable competitive advantage. The human resource qualifies as a potential source of sustained competitive advantage through the fulfillment of five criteria: strategic value, rare, appropriable, inimitable, and cannot be substituted (Turner & Kalman, 2014). Human resources under the power of talent management are one of the elements in the corporate environment, which can achieve these criteria and provide a sustained competitive advantage. In summary, talent management aids in the achievement of competitive advantage by employing the right persons in the right job, retaining the best talent, a better understanding of employees, and professional development decisions.
Berger, L. (2017). Talent Management Handbook: Creating A Sustainable Competitive Advantage By Selecting, Developing, And Promoting the Best People. McGraw-Hill Education.
Collings, D. G., Mellahi, K., & Cascio, W. F. (2019). The Oxford handbook of talent management. Oxford, United Kingdom, Oxford University Press.
Hatum, A. (2010). Next-generation talent management: Talent management to survive the turmoil. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.
Silzer, R. F., & Dowell, B. E. (2010). Strategy-driven talent management: A leadership imperative. San Francisco: Jossey-Bass.
Thunnusen, M., & Gallardo-Gallardo, E. (2017). Talent management in practice: An integrated and dynamic approach. Bingley: Emerald Publishing.
Turner, P., & Kalman, D. (2014). Make your people before you make your products: Using talent management to achieve a competitive advantage in global organizations. Chichester, West Sussex: Wiley.